House Bill No. 952, introduced by Representative Jordan, amends existing laws regarding consumer loans in Louisiana. The bill establishes new maximum loan finance charges, increasing the threshold for the highest interest rates that can be charged based on the unpaid principal balance. Specifically, it sets the maximum rates at 36% for loans up to $2,500, 24% for loans between $2,500 and $10,000, and 17% for amounts exceeding $10,000. Additionally, the bill raises the origination fee that lenders can charge from $50 to $75 and increases the initial application and license fee from $650 to $900, as well as the annual renewal fee from $500 to $750.

Furthermore, the bill introduces several consumer protection measures, including requirements for lenders to notify borrowers of assistance programs in the event of a major disaster declaration and to suspend late charges and collection actions for 60 days following such a declaration. It mandates that lenders offer credit education programs at no cost to borrowers and prohibits them from requiring participation in these programs as a condition for obtaining a loan. The bill also emphasizes the necessity for lenders to assess a borrower's ability to repay before issuing loans and allows borrowers to prepay loans without incurring penalties.

Statutes affected:
HB952 Original: 9:3519(A), 9:3530(A)(1), 9:1(A)
HB952 Engrossed: 9:3519(A), 9:3530(A)(1), 9:1(A)
HB952 Reengrossed: 9:3519(A), 9:3530(A)(1), 9:1(A)